Panama rejects US demands for free passage through the canal

The Panama Canal Authority claims that it did not exempt American ships from paying the tolls.

Reported by UNN with reference to Reuters and BBC.

The Panama Canal Authority has denied the US State Department's statement that US government vessels will be able to cross the canal without paying any fees.

Such a response is likely to increase tensions with the United States, especially after President Donald Trump threatened to regain control of the transition.

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The Canal Authority, an autonomous agency controlled by the Panamanian government, said it had not made any changes to toll collection or rights to cross the canal, adding that its statement was a direct response to the US allegations.

Context

The Panama Canal has been one of the most talked about issues under the new US administration after Donald Trump expressed his intention to regain control of the facilities, claiming that China has been receiving preferences. The 82-kilometer-long canal, which connects the Atlantic and Pacific Oceans, was built in the early 20th century by the United States, but since 1999 it has been controlled by Panama through an independent body that guarantees the neutrality of its management.

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During his visit to Panama last week, Rubio said that “immediate changes” are needed to combat what he called China's “influence and control” over the canal. During a meeting with Panamanian President Jose Raul Mulino and Panama Canal Authority Chairman Ricauta Vazquez Morales, Rubio said the United States could take action if the alleged violations of the canal's neutrality continue.

The Panamanian authorities deny accusations of preferences granted to China, but have shown that they are open to dialogue with Washington, and Mulino has even promised to withdraw the country from the New Silk Road (a transport route for moving rail freight and passengers overland from China's industrial centers to Europe - ed.

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